DFL_GOTV2026_WebBanner 1800×150 px

Higher Ed for American Indian Increases Employment Rate But Does Not Close Earnings Gap

Staff Reporter
Share :
Facebook
X
DFL_GOTV2026_WebBanner 1800×150 px

A postsecondary degree for the American Indian and Alaskan Native (AIAN) populations increases employment rates and labor force participation but reaps smaller gains in earnings compared to their white counterparts. According to a working paper published by St. Catherine University economics researchers and the Federal Reserve’s Center for Indian Country Development (CICD), increases in employment associated with a bachelor’s degree or higher are 5 percentage points more among AIAN than whites, however the earnings premium with that degree is 8 percent less for the AIAN community.
In addition, while AIAN complete associate degrees at similar rates to white Americans and are even more likely to have some college experience, they are far less likely to have a bachelor’s degree or higher.

The study examines American Community Survey data from 2008-2016 and drills down into how postsecondary education impacts employment and earnings by race, age, gender and geography. Sample data includes 209,955 respondents who identify as AIAN, and 10,889,055 non-AIAN workers aged 25-55 years. AIAN respondents are further broken down into racial/ethnic subgroups including those who identify as AIAN only (100,440), AIAN-Hispanic (33,967), and AIAN and at least one other race (75,548).

“There is a substantial amount of research out there that examines returns to education and racial disparities in the labor market, but because the AIAN population is often lumped in the ‘other’ category, less is known about how returns to higher education might be different for them specifically,” said Kristine West, PhD, Associate Professor of Economics at St. Catherine University.

There are sizable labor market disparities. With similar education and experience, AIAN earn, on average, 15 percent less and have 6.2 percentage points lower employment rates than white Americans. Interestingly, AIAN who identify as multi-race have a smaller earnings gap at 11.5 percent. To illustrate the findings about differential returns to higher education, study authors used the data to develop a hypothetical case study where postsecondary education and completion rates for AIAN were increased to match that of white Americans and found that the white-AIAN labor market disparities would still be largely unresolved.

The differential returns to higher education was more pronounced in urban areas than rural, which validates previous research that finds returns on education are more similar for rural workers than urban workers.

Staff Reporter,
Environment & Politics
Elaine Strongbow is a member of the Leech Lake Band of Ojibwe and has covered environmental and tribal sovereignty issues for The Circle since 2019. She is a graduate of the University of Minnesota School of Journalism and was a 2023 fellow of the Institute for Nonprofit News.

This reporting is made possible by readers like you.

The Circle is a nonprofit newsroom with no tribal affiliation, no corporate ownership, and no paywall. Independent Native journalism depends on reader support.

Advertisement

Medicaid Exemptions - MN DHS Ad 2

Recent Stories

Advertisement

PWFH Web Banner Ad (1000x2110)

More From News

Native Women Run Builds Community and Breaks Barriers to Racing

As runners prepare for October races, Native Women Run is working to ensure Native women have a place at the starting line. This nonprofit organization represents and empowers Native women across the United States and Canada, creating opportunities to run while strengthening visibility, sisterhood, empowerment, and community. Founder Verna NezBegay Volker, a Navajo Nation citizen […]

Lily Gladstone, Kiowa Gordon to Star in Supernatural Western ‘The Curse of Silver’

Lily Gladstone and Kiowa Gordon are set to star in The Curse of Silver, a new supernatural horror-western that will reunite the actors with Quantum Cowboys director Geoff Marslett. Gladstone, an Oscar nominee known for Killers of the Flower Moon, and Gordon, known for Twilight and Dark Winds, are attached to lead the film. Marslett […]

Dakota-Led Owámniyomni Project Restores Connection to Sacred Minneapolis River Site

MINNEAPOLIS — Along Ȟaȟá Wakpá, the Mississippi River, a Dakota-led effort is working to restore land, culture, and community connection at Owámniyomni, commonly known as St. Anthony Falls. For Dakota people, Owámniyomni, meaning “turbulent waters,” has long been a sacred place for ceremony, gathering, trade, and offerings. Nearby Wíta Wanáǧi, or Spirit Island, was a […]

DFL_GOTV2026_WebBanner 1800×150 px

Search The Circle

Find stories, columns, events, and magazine features.

Indigenous news, community stories, events, and updates—delivered to your inbox.